We are worse than Bangladesh which is the third easiest country to do business with in South Asia.

Even among eight south Asian countries, India ranks sixth in the category of “ease of doing business” – ahead only of Bhutan and Afghanistan – extremely shameful !

If we are to compete with China as a global player, we need to figure out ways to improve attracting foreign investment and keeping them here.

The Indian middle-class is obviously a huge growing market, so every big company is trying to establish itself in India but if it continues to be hard for the business environment, companies are soon going to give up.

Even though India is the top reformer in South Asia and has implemented reforms to simplify business registration, cross-border trade, and payment of taxes, as well as easing access to credit and strengthening investor protection in the last couple of years, it hasn’t helped much to improve India’s rankings in terms of ease of doing business – we have just moved up 4 places since the last year and have a long way to go

Hopefully, the Indian government continues to maintain its pace of reforms especially with regard to labour laws and decreasing the processing time at courts.

The good thing is we can only go up from here !🙂

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8 Responses to “India ranked very low for doing business”

I think there is alot to improve in India. As a benchmark what China gets (FDI) in a year as compared to us its a starklimg difference. China is getting 60 Billion UD per year and we are getting only below 10 Billion USD. This stat is from last year.

Anyway i would like to know from you and others why dont we figure out whats wrong in different areas and what is needed to improve upon and than come up with solutions. I think we can keep worrying about this and write about it, but we should come up with some suggestions and solutions to improve upon, this is where our real contibution will be.
Any takers on that!.

The survey takes into account only the time and cost to meet government requirements in business start-up, operation, trade, taxation, and closure. They do not track variables such as market size, macroeconomic policy, quality of infrastructure, currency volatility, investor perceptions, or crime rates.

The statistics is from the assumption that the political and business environment is uniform throughout all states and cities in India which is not true. India consists business zones – as in a certain area for a certain inudstry where a business can thrive.

Though there are bottlenecks, unlike what the survey suggests, India has cities which are far more business friendly than several other coutries ranked higher. And the Return on Investment is much higher in India in several industrial domains.

But yes, we have to go a long way in reducing the bureaucracy and government interference.

Well,I am not surprised at the rankings.Infact sometime back a group of Japanese businessmen had visited India in order to do business.However after doing some research, they went back disappointed coz according to them its difficult to do business in India because of low honesty level amongst Indians.

@everything else – yes, there are lots of studies but this is by the World Bank – which a lot of companies (with money) pay attention to. We don’t want to be perennial pessimists whining about how everything is wrong with our country but I have to admit that this study has valid points – simple things take much longer than needed.
I’m NOT saying India is not a top business destination. This study is just pointing out that the Indian environment is not very conducive to businesses – we have to be aware of it and try to improve it
@Woke: Totally agree with you. Yes, some business zones are much better than anywhere else in the world – definitely need to decrease bureaucracy . It seems that the smallest paperwork is a huge hassle because almost everything needs to be done in triplicate and passed among 50 people thru 10 different departments . I know i’m exaggerating here (but only a little bit:)) . Eliminating (via online) or reducing the “number of touches” will vastly improve the process of starting a business . I think it will be a small step in reducing corruption too since there will be fewer people we need to give “baksheesh” to🙂